Mainland brands drive Hong Kong retail recovery beyond F&B

Mainland Chinese brands accounted for more than one fifth of new retail entrants in Hong Kong during the first four months of 2026, shifting focus from food and beverage to fashion, beauty and other categories.

Property consultancy JLL reported that mainland brands made up over 20 per cent of new retail market entrants in Hong Kong from January to April this year. Their share stood at about 30 per cent for the whole of 2025.

The composition of these brands has changed markedly. Only 25 per cent of new mainland entrants in the first quarter operated food and beverage outlets, compared with 73 per cent in 2025.

Cathie Chung, senior director of research at JLL, said mainland brands are placing greater emphasis on design, product quality and brand image. She added that new entrants now span fashion, beauty, skincare, fragrances, leather goods and jewellery.

Analysts expect Hong Kong to continue attracting such brands, helping landlords fill vacant retail spaces during the city’s uneven market recovery.

Liittyvät artikkelit

Sales of luxury homes in Hong Kong surged 156% in the first quarter, driven by stock-market gains and attractive prices, real estate agents say. Mainland Chinese buyers accounted for more than half of the deals. The segment is likely to see another increase in the second quarter.

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More than 50 restaurants and shops in Hong Kong's Central district have joined a 'tourism everywhere' initiative to promote local delicacies and goods while offering discounts to residents and tourists. The programme, announced by the Hong Kong Small and Medium Enterprises Association on Friday, runs from May 1 to the end of June, overlapping with mainland China's Labour Day golden week. Secretary for Commerce and Economic Development Algernon Yau Ying-wah said it would draw more visitors and boost spending.

Hong Kong recorded 714,765 mainland Chinese visitors in the first three days of the Labour Day 'golden week' holiday from May 1 to 3, up 4.8% from last year. Total arrivals reached 854,929, slightly higher than 803,612 last year, though industry players noted uneven spending despite potential 90% hotel occupancy.

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Office rents in Hong Kong’s Central district are forecast to increase faster from the second quarter, reversing a slump that started in late 2019. Stronger demand has already cut grade-A vacancy rates to 9.6 per cent, a four-year low.

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